As AT&T pursues regulatory approvals to shutter its aging copper-based network across the country, the operator is offering regulators a view of falling demand in Oklahoma.
AT&T gave regulators a peek at its efforts to shutter its aging copper network, arguing that demand for and use of it has mostly collapsed.
"Across AT&T's entire footprint, new orders for AT&T Residential Local Service have plummeted by 96% since 2014," the operator wrote to the FCC in reference to its copper-based network.
In its filing AT&T focused on operations in Oklahoma, where it hopes to shutter its legacy TDM-based voice service in nine wire centers. Specifically, the operator wants regulatory approval to "grandfather" those locations on December 15, 2024, and then completely discontinue service across its Oklahoma copper network in those same wire centers on September 15, 2025. Because, according to AT&T, "there is virtually no demand for the service" in the area.
"In fact, as of October 17, 2024, only 52 customers subscribe to the Affected Service in the Affected Service Area," AT&T wrote in reference to its remaining copper network operations in Oklahoma. "AT&T has received only one new order for AT&T Residential Local Service over the last year in the Affected Service Area, even though there are over 2,700 Living Units in the Area. In the 12 months preceding December 2023, 20 customers – approximately one quarter of the subscriber base – canceled their subscription to the Affected Service in the Affected Service Area."
AT&T argued that there are plenty of other options for voice services offered over cable, fiber, fixed wireless, mobile wireless and satellite technologies. Indeed, AT&T is working with the affected customers to shift them onto its mobile network in the area.
"The vast majority of customers in the Affected Service Area have already selected these services in lieu of the Affected Service. Indeed, only 1.9% of Living Units in the Affected Service Area still subscribe to the Affected Service," the operator wrote.
A replacement offer
In its filing, AT&T boasted of its new AT&T Phone-Advanced (AP-A) as a replacement for services delivered over the copper network. The operator outlined the product in a recent post to its website, noting the gadget uses AT&T's wireless network as well as "any broadband connection as a backup." AT&T's AP-A is available across 19 states today "and will continue to expand to other markets and states across the country," the operator explained.
AT&T disclosed to the FCC the results of its AP-A reliability tests, noting that it conducted performance testing during September across nearly 2 million calls.
The operator said 99.55% of calls during the testing period "had a mouth-to-ear, one-way latency of less than 200 milliseconds – far surpassing the 95% benchmark outlined in AT&T's test plan." Average packet loss per call was just 0.2%, or below the 1% benchmark set by the FCC, according to the AT&T, and "calculated availability" was 99.999% (the vaunted "five nines" of the telecom industry).
Nationwide, AT&T said it now has more than 16,000 residential customers using AP-A, including five customers in its proposed shutdown area in Oklahoma.
A move to fiber
AT&T is in the midst of a massive fiber network buildout program that involves expanding fiber connections to at least 30 million locations by 2025. However, AT&T serves about 60 million locations with copper, and not all will be replaced with fiber, according to the financial analysts at Evercore. They estimate that at least 15 million copper locations won't be offered a fiber replacement.
In those locations, AT&T is offering wireless replacements. For its copper Internet customers, AT&T first disclosed its "Internet Air" fixed wireless service in 2023. Roughly a year later, AT&T began selling AP-A to affected copper voice calling customers.
AT&T CEO John Stankey wrote on social media at the time that the operator shouldn't be required to maintain networks in areas where there are few customers. "It's time to do what capitalism is best suited to do: deploy capital and resources to their highest and best use for customers, communities, and society at large," he said.
However, AT&T's shutdown efforts haven't been completely smooth. The California Public Utilities Commission (CPUC) ruled this summer against the operator's request to shutter portions of its copper network in the state. The agency argued that AT&T's status as the state's "carrier of last resort" (COLR) obligates the company to maintain its aging copper network despite the fact that it's lightly used and expensive to maintain.
Article updated November 13 to correct and clarify details, including that AT&T's DSL network is not involved in this shutdown.
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